Bangalore based FinTech startup, Open has received $250k in the seed round of funding led by PayU India CEO Amrish Rao and Managing Director Jitendra Gupta. The startup plans to use raised capital for branding and expansion of the 12-member team.
Open is founded by Anish Achuthan and Mabel in May 2017, who previously founded FinTech startups Cashnxt (2008), Neartivity Wireless (2010) and Zwitch (acquired by Citrus Payments in 2015).
The company, which is set to launch in the next month will offer digital banking, bookkeeping, invoicing and other services to micro-entrepreneurs. The key features of the Open include a digital business account that can be activated within 5 minutes using a fully digital onboarding process. The digital business account comes with integrated GST-complaint invoicing, book keeping, payments, API Banking and credit-line that is available on the desktop and mobile app.
Anish Achuthan, co-founder and CEO of Open, said, “With an increasing number of SMEs out of the 51million SMEs going online, traditional business banking services are not able to address the growing needs of the millennial entrepreneurs. Open wants to disrupt the space by offering an innovative digital banking service that helps small businesses manage cash flows, automate accounting and get better insights into their businesses using technology.”
“We want to provide a complete solution for micro-entrepreneurs, freelancers and startups with only a handful of employees to manage their business banking and also offer analytics. We aim to reach about 10,000 such small entrepreneurs in six months,” further he added.
Open aims to disrupt the traditional business banking space by offering an intuitive, API-driven digital banking service targeted at small businesses and startups.
The company is tying up with a private bank for backend account servicing and has also partnered with a GST Suvidha provider (GSP) to offer small businesses help in filing invoices under the new GST regime. Going forward, the company will also tie up with an NBFC to offer lending products to these businesses.